An estoppel letter is a legal letter that is written and signed by a tenant for use by their landlord to confirm that certain circumstances are true with regard to a letting. The letter is also referred to as an estoppel certificate.
Such a letter will confirm the amount paid by the tenant to the landlord, the amount of the security deposit held by the landlord, the expiration date of the current tenancy contract, and overall term of tenancy.
This kind of document is used by landlords when they are trying to secure lines of credit against the property in question, or if they are trying to sell the property.
An estoppel letter also allows the tenant the opportunity to tell the person or institution that is considering lending money to the landlord or buying the property whether or not they have any outstanding legal claim against the landlord in relation to the property. It is used as a form of collateral to ensure that the loan is able to be repaid or that the property will have a set income in the future.